Import/Export Price Indexes

U.S. Import and Export Price Indexes News Release

Transmission of material in this release is embargoed until USDL-10-1104
8:30 a.m. (EDT) Thursday, August 12, 2010
Technical information: (202) 691-7101 * MXPinfo@bls.gov * www.bls.gov/mxp
Media contact: (202) 691-5902 * PressOffice@bls.gov
U.S. IMPORT AND EXPORT PRICE INDEXES - JULY 2010
U.S. import prices increased 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today,
following declines in each of the two previous months. The advance was led by higher fuel prices, which
more than offset a second consecutive drop in nonfuel prices. In contrast, export prices decreased in July,
falling 0.2 percent after falling 0.7 percent in June.
Imports
All Imports: Import prices ticked up 0.2 percent in July following declines of 1.3 percent and 0.8 percent,
respectively, in the previous two months. Despite the July increase, the index fell 2.0 percent over the past
quarter, the largest three-month decline since the quarter ended in February 2009. The price index for overall
imports rose 4.9 percent for the year ended in July.
Fuel Imports: The increase in import prices was driven by a 2.1 percent advance in fuel prices. Import fuel
prices had declined 4.9 percent and 5.1 percent, respectively, in June and May prior to the upturn in July.
Most of the increase in fuel prices resulted from a 2.0 percent advance in petroleum prices. A 5.3 percent rise
in natural gas prices also contributed to the increase. Fuel prices rose 14.8 percent over the past year, while
both the price indexes for petroleum and natural gas also increased over the same period, rising 14.4 percent
and 29.1 percent, respectively.
All Imports Excluding Fuel: In contrast, nonfuel prices fell 0.3 percent in July after a 0.5 percent decline in
June. Those were the first monthly decreases since a 0.2 percent drop in July 2009 and the largest since a 0.6
percent decline in March 2009. The July decline was driven by a 1.2 percent decrease in the price index for
nonfuel industrial supplies and materials while foods, feeds, and beverages prices advanced and the major
finished goods categories were mixed. Despite the recent declines, nonfuel import prices advanced 2.8
percent over the past 12 months.
Table A. Percent changes

Exports
All Exports: Export prices fell for the second month in a row in July, declining 0.2 percent following a 0.7
percent decrease in June. The June and July drops represented the first time export prices have fallen in
consecutive months since February and March 2009. Approximately 91 percent of the overall decrease was
attributable to falling nonagricultural prices. Despite the recent declines, overall export prices rose 3.9
percent for the July 2009-2010 period.
Agricultural Exports: The price index for agricultural exports also fell in July, edging down 0.1 percent
after recording no change the previous month. Agricultural prices rose 2.4 percent over the past year, led by
higher prices for cotton and meat, which increased 43.3 percent and 13.1 percent, respectively.
All Exports Excluding Agriculture: Nonagricultural export prices fell 0.2 percent in July following a 0.8
percent decline in June. Prices for nonagricultural exports decreased 0.6 percent over the past quarter, the
largest three-month decline since a 1.8 percent drop for the quarter ended February 2009. Falling
nonagricultural industrial supplies and materials prices, capital goods prices, and prices for automotive
vehicles all contributed to the decrease in July. Notwithstanding the declines over the past two months, the
price index for nonagricultural exports rose 4.1 percent for the year ended in July.
SELECTED JULY HIGHLIGHTS
Import Prices
Nonfuel Industrial Supplies and Materials: Nonfuel industrial supplies and materials prices decreased 1.2
percent after a 1.5 percent drop the previous month. Those declines countered an upward trend over the past
year. Lower prices for unfinished metals and building materials, down 2.5 percent and 5.2 percent,
respectively, each contributed to the July decline. Despite the declines in June and July, the price index for
nonfuel industrial supplies and materials rose 14.5 percent over the past year.
Finished Goods: Finished goods prices were mixed in July with the price indexes for consumer goods and
capital goods declining 0.2 percent and 0.1 percent, respectively, and automotive vehicles prices rising 0.4
percent. The drop in consumer goods prices was led by a 4.1 percent decrease in prices for home
entertainment equipment while lower computers, peripherals, and semiconductors prices drove the decrease
in capital goods prices.
Foods, Feeds, and Beverages: Prices for foods, feeds, and beverages rose 0.4 percent in July after a 1.7
percent decline the previous month. Higher prices for coffee, bakery and confectionery products, and fish
and shellfish were the main contributors to the advance.
Imports by Locality of Origin: Import prices from China ticked up 0.1 percent in July. In contrast, the price
indexes for imports from Mexico, the European Union, and Canada all decreased in July, falling 0.7 percent,
0.2 percent, and 0.1 percent, respectively. Prices for imports from Japan were unchanged in July following a
0.2 percent advance the previous month.
Transportation Services: Import air passenger fares fell 1.3 percent in July, led by a 3.9 percent decline in
European fares. The downturn in overall import air passenger fares followed a 9.2 percent increase the
previous month. Over the past year, import air passenger fares rose 21.3 percent. The price index for import
air freight also fell in July, decreasing 1.1 percent after a 0.9 percent decline in June.
Export Prices
Nonagricultural Industrial Supplies and Materials: The price index for nonagricultural industrial supplies
and materials fell 0.4 percent in July following a 1.7 percent drop in June. The July decline was led by a 1.6
percent drop in fuel prices, although lower prices for chemicals and steelmaking materials also contributed to
the overall decrease.
Finished Goods: Overall, finished goods prices recorded little movement in July as the prices indexes for
capital goods and automotive vehicles each ticked down 0.1 percent while consumer goods prices rose 0.2
percent. The drop in capital goods prices was driven by a 0.8 percent decline in prices for computers,
peripherals, and semiconductors.
Transportation Services: Export air passenger fares rose 4.8 percent in July as higher prices for Asian fares,
European fares, and Latin American and Caribbean fares air contributed to the rise. In contrast, export air
freight prices decreased 1.4 percent, led by a 1.9 percent drop in the price index for European air freight.
Import and Export Price Index data for August 2010 are scheduled for release on Wednesday,
September 15, 2010 at 8:30 a.m. (EDT).

Table 1. U.S. import price indexes and percent changes for selected categories of goods: July 2009 to July 2010

Footnotes(1) Relative importance figures are based on 2008 trade values.

NOTES: Data may be revised in each of the three months after original publication.
Dash = Not available

TECHNICAL NOTE
Import and Export Merchandise and Services Price Indexes -- All indexes use a modified Laspeyres
formula and are not seasonally adjusted. Price indexes are reweighted annually, with a two-year lag in
the weights. Published series use a base year of 2000=100 where possible. More detailed index series
and additional information may be obtained at http://www.bls.gov/mxp, or by calling (202) 691-7101.
Merchandise Goods Classification Systems -- The merchandise price indexes are published using
three classification systems. Items are classified by end use according to the Bureau of Economic
Analysis Classification System, by industry according to the North American Industry Classification
System (NAICS), and by product category according to the Harmonized System (HS). While
classification by end use and product category are self-explanatory, some notes are in order for
classifying items by industry. In the NAICS imports and exports tables, items are classified by output
industry, not input industry. As an example, NAICS import index 326 (plastics and rubber products
manufacturing) include outputs such as manufactured plastic rather than inputs such as petroleum. The
NAICS classification structure also matches the classification system used by the PPI (Producer Price
Index) to produce the NAICS primary products indexes.
Import Price Indexes -- Products have been classified by the Harmonized Tariff Schedule of the United
States Annotated (TSUSA). Import prices are based on U.S. dollar prices paid by the U.S. importer.
The prices are generally either "free on board" (f.o.b.) foreign port or "cost, insurance, and freight"
(c.i.f.) U.S. port transaction prices, depending on the practices of the individual industry. The index for
crude petroleum is calculated from data collected by the U.S. Department of Energy.
Export Price Indexes -- Products have been classified by the Harmonized Schedule B classification
system of the U.S. Bureau of the Census. The prices used are generally either "free alongside ship"
(f.a.s.) factory or "free on board" (f.o.b.) transaction prices, depending on the practices of the individual
industry. Prices used in the grain index, excluding rice, are obtained from the U.S. Department of
Agriculture.
Services Price Indexes -- Starting in September 2008 the Import Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by foreign carriers from U.S. residents and are
calculated from data obtained from an airline consulting service. These data include tickets sold by
travel agencies and travel websites. Tickets sold directly by the airlines are excluded, as are frequent
flyer tickets generally. Starting in January 2008 the Export Air Passenger Fares Indexes represent
changes in the average revenue per passenger received by U.S. carriers from foreign residents and are
calculated from data collected directly from airlines. These data include frequent flyer tickets and those
sold by consolidators. Taxes and fees are included in the Import Air Passenger Fares Index and excluded
from the Export Air Passenger Fares Index. The Air Freight Indexes are calculated from data collected
directly from airlines. These data exclude mail and passenger baggage. The scope of the service being
priced is the movement of freight from airport to airport only, and does not include any ground
transportation or port service. The Air Freight Indexes are presented using two definitions: Balance of
Payments (which represent transactions between U.S. and foreign residents) and International (which
represent transactions inbound to and outbound from the U.S.). Fact sheets specifying detailed
information for each services industry are available at http://www.bls.gov/mxp under "MXP
Publications."
Import Indexes by Locality of Origin -- Prices used in these indexes are a subset of the data collected
for the Import Price Indexes. Beginning with January 2002, the indexes are defined by locality of origin
using a nomenclature based upon the North American Industry Classification System (NAICS).
Nonmanufactured goods are defined as NAICS 11 and 21 and manufactured goods are defined as
NAICS 31-33.
Revision Policy -- To reflect the availability of late reports and corrections by respondents, monthly data
may be revised in each of the three months after original publication. After three months, no further data
revisions take place. So, for example, data released in the January release will be subject to revision in
the releases for February, March, and April.
Uses of the Data -- The primary use of the indexes is to deflate trade statistics, notably the foreign trade
sector of the National Income and Product Accounts constructed by the Department of Commerce.
Other published indexes are useful for general market analysis. For trade in international services,
Balance of Payments indexes are used for deflating National Income and Product Accounts, while
International indexes are more appropriate for market analysis. Merchandise and services indexes also
can be used to study U.S. competitiveness and to compute price elasticities, and the merchandise import
indexes by country or region of origin are useful in terms of trade analysis.
E-Mail Subscription -- The U.S. Import and Export Price Indexes news release is available through an
e-mail subscription service at (http://www.bls.gov/bls/list.htm).
Additional Information -- More detailed data are available on the Import/Export Price Indexes home
page at (http://www.bls.gov/mxp). Flat Files and the FTP server are available for users requiring access
to either a large volume of time series data or other related documentation. The FTP site can be accessed
at ftp://ftp.bls.gov. For technical assistance in using the BLS Internet site, send e-mail to
(labstat.helpdesk@bls.gov). For Import/Export Price Index data requests, send e-mail to
(mxpinfo@bls.gov).
Information from this release will be made available to sensory impaired individuals upon request.
Voice phone: 202-691-5200; Federal Relay Service: 1-800-877-8339.